The highly anticipated Constantinople hard fork was supposed to occur on January 16th but ended up being postponed due to a last-minute security vulnerability. The fork was rescheduled for February 27th, but that date has also come and gone without any action. So, what’s the hold up?
The Constantinople hard fork was first proposed back in August of 2018. The fork was designed to help improve Ethereum’s scalability and efficiency by making six different code changes.
Of these six changes, five were completed on schedule and implemented on the testnet in October.
The final change, known as EIP 1234, was supposed to delay the “difficulty bomb” by 12 months and reduce block rewards from 3 ETH to 2 ETH. This final change is what caused the security vulnerability that led to the postponement of the hard fork.
The difficulty bomb is a mechanism that slowly increases the difficulty of mining new blocks on the Ethereum network. This is designed to incentivize users to switch over to the new PoS protocol once it’s ready.
However, the EIP 1234 change would have delay the difficulty bomb by 12 months, which would have put off the switch to PoS until 2021.
This postponement caused a lot of uproar within the Ethereum community. Many felt that it would be better to switch over to PoS sooner rather than later, as it would help improve security and decentralization on the network.
As a result of all this controversy, the Constantinople hard fork has been postponed indefinitely until a consensus can be reached on when or if to implement EIP 1234. In the meantime, Ethereum’s developers are working on other ways to improve scalability and efficiency on the network.
Ethereum’s price has been volatile in recent weeks due to all this uncertainty surrounding the hard fork. It remains to be seen how things will play out in the coming weeks and months, but one thing is for sure: The Constantinople hard fork is proving to be more difficult than anyone could have anticipated.
Why Is Ethereum Crashing? – Conclusion
The answer is simple: uncertainty surrounding the Constantinople hard fork is causing investors to sell off their ETH holdings, leading to a sharp decline in price. Until there is more clarity on when or if the hard fork will occur, Ethereum’s price is likely to remain volatile.